Colgate-Palmolive (CL) AI Stock Analysis

• Market Cap: $64.14B
• Dividend Yield: 2.51%
• Average Volume (3M): 5.01M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.17
• Revenue Growth: 0.05%
• EPS Growth: 3.55%
• Country: US
• Employees: 34,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.92
• Shares Outstanding: 808,220,800
• 10 Day Avg. Volume: 5,594,768
• 30 Day Avg. Volume: 5,005,698
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 4.08
• Enterprise Value/Gross Profit: 6.74
• Enterprise Value/Ebitda: 17.02
• 1Y Price Target: $97.08
• Price Target Upside: 19.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 63 Neutral
• Price Target: $89.00 ▲(9.70% Upside)

Colgate-Palmolive's overall stock score reflects strong financial performance and promising strategic initiatives. However, technical indicators suggest short-term bearish trends, and high leverage poses financial risks. The company's valuation appears slightly high, but its dividend yield provides some investor support.

Positive Factors

Cash Flow Management

Strong cash flow management with a 10.9% free cash flow growth rate indicates efficient operations and financial stability, supporting long-term sustainability despite high leverage.

Innovation and AI Integration

Integration of AI in innovation and revenue management enhances product offerings and operational efficiency, positioning the company for sustained competitive advantage.

Productivity Initiatives

The new productivity program focuses on cost savings and operational efficiency, aligning with strategic goals to enhance market positioning and long-term profitability.

Negative Factors

High Debt Levels

High debt levels relative to equity pose financial risks, potentially limiting financial flexibility and increasing vulnerability to economic downturns.

Gross Margin Pressure

Ongoing gross margin pressure from raw material costs could impact profitability, necessitating strategic cost management to maintain financial health.

Challenges in Key Markets

Market challenges in North America and Europe, including cautious consumer behavior, may hinder revenue growth and require strategic adjustments to sustain market share.

Colgate-Palmolive Business Overview & Revenue Model

Company Description

Colgate-Palmolive Company is a global leader in the consumer goods sector, specializing in the production and marketing of personal care, household, and oral care products. Founded in 1806, the company operates in two main segments: Oral, Personal and Home Care, and Pet Nutrition. Core products include well-known brands such as Colgate toothpaste, Palmolive dish soap, Speed Stick deodorants, and Hill's Science Diet pet food. With a strong presence in over 200 countries, Colgate-Palmolive is committed to sustainability and improving the health and hygiene of consumers worldwide.

How the Company Makes Money

Colgate-Palmolive generates revenue primarily through the sale of its wide range of consumer products. The company's revenue model is based on direct sales of products through various channels including retail, e-commerce, and wholesale distribution. Key revenue streams include oral care products (like toothpaste and mouthwash), personal care items (such as soaps and deodorants), and pet nutrition products. The company benefits from strong brand loyalty and recognition, which drives repeat purchases. Additionally, Colgate-Palmolive invests in marketing and product innovation, allowing it to maintain competitive advantages in the marketplace. Significant partnerships with retailers and e-commerce platforms further enhance its distribution capabilities, contributing to overall earnings.

Colgate-Palmolive Financial Statement Overview

Summary

Colgate-Palmolive exhibits strong profitability and cash flow performance, reflecting efficient operations and good cash conversion metrics. However, the high debt levels relative to equity raise concerns about financial leverage and potential risks, particularly with recent revenue contraction. The company should focus on improving its equity base and managing leverage to sustain long-term financial health.

Income Statement

Colgate-Palmolive shows strong profitability with a consistent gross profit margin around 60.6% for TTM and a net profit margin of 14.5%. The company has experienced stable revenue growth, with the latest TTM period showing a slight decline. EBIT and EBITDA margins remain robust at 21.4% and 23.3% respectively, indicating efficient cost management. The company maintains solid profitability metrics, though recent revenue contraction calls for attention.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 10.17, which poses a risk due to potential leverage challenges. However, the company maintains a strong return on equity (ROE) of 414.8% for the latest period due to a relatively low equity base. The equity ratio stands at 4.02%, indicating low stockholder equity relative to total assets. Overall, while profitable, the high leverage might expose the company to financial risk.

Cash Flow

Colgate-Palmolive demonstrates robust cash flow management. The free cash flow growth rate is healthy at 10.9% for TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.35, and the free cash flow to net income ratio is 1.16, suggesting efficient conversion of profits into cash. This strong cash flow performance supports the company's financial stability despite high leverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.00B	20.10B	19.46B	17.97B	17.42B	16.47B
Gross Profit	12.11B	12.11B	11.25B	10.15B	10.29B	9.93B
EBITDA	4.80B	4.85B	4.25B	3.37B	3.76B	4.35B
Net Income	2.91B	2.89B	2.30B	1.78B	2.17B	2.69B
Balance Sheet
Total Assets	17.47B	16.05B	16.39B	15.73B	15.04B	15.92B
Cash, Cash Equivalents and Short-Term Investments	1.22B	1.10B	966.00M	775.00M	832.00M	888.00M
Total Debt	8.76B	8.51B	9.06B	9.27B	7.83B	8.21B
Total Liabilities	16.42B	15.50B	15.44B	14.93B	14.07B	14.82B
Stockholders Equity	702.00M	212.00M	609.00M	401.00M	609.00M	743.00M
Cash Flow
Free Cash Flow	3.37B	3.55B	3.04B	1.86B	2.76B	3.31B
Operating Cash Flow	3.92B	4.11B	3.75B	2.56B	3.33B	3.72B
Investing Cash Flow	-790.00M	-534.00M	-742.00M	-1.60B	-592.00M	-878.00M
Financing Cash Flow	-3.05B	-3.39B	-2.79B	-952.00M	-2.77B	-2.82B

Colgate-Palmolive Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 81.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CL, the sentiment is Negative. The current price of 81.13 is below the 20-day moving average (MA) of 82.86, below the 50-day MA of 84.55, and below the 200-day MA of 88.50, indicating a bearish trend. The MACD of -1.24 indicates Positive momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 22.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CL.

Colgate-Palmolive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	356.74B	23.43	30.71%	2.71%	0.29%	7.85%
CHD	69 Neutral	21.16B	41.13	11.95%	1.35%	1.13%	-34.78%
CLX	64 Neutral	15.05B	18.47	252.34%	3.98%	0.16%	191.17%
CL	63 Neutral	$64.14B	22.31	705.21%	2.51%	0.05%	3.55%
KVUE	59 Neutral	32.36B	23.42	10.65%	4.88%	-2.15%	26.65%
KMB	57 Neutral	41.12B	17.07	191.19%	4.03%	-6.89%	7.52%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Colgate-Palmolive Corporate Events

Colgate-Palmolive Launches New Productivity Program

On July 31, 2025, Colgate-Palmolive‘s Board of Directors approved a new three-year productivity program aimed at supporting its 2030 strategy. This program focuses on optimizing the company’s global supply chain, streamlining organizational structures, and reducing overhead costs, with projected pre-tax charges between $200 and $300 million over three years. The program is expected to enhance the company’s operational efficiency and strategic alignment, with most charges incurred by the end of 2028, potentially impacting stakeholders and market positioning.

The most recent analyst rating on (CL) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.

Colgate-Palmolive Appoints Shane Grant as COO

On May 29, 2025, Colgate-Palmolive announced the appointment of Shane Grant as Chief Operating Officer for the Americas, effective June 16, 2025. Grant, who previously held leadership roles at Danone and The Coca-Cola Company, will receive a comprehensive compensation package including a base salary, bonuses, and equity awards. The company also announced the retirement of Prabha Parameswaran and subsequent leadership changes, positioning itself for strategic growth and development.

The most recent analyst rating on (CL) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.

Colgate-Palmolive Holds Annual Stockholders Meeting

On May 9, 2025, Colgate-Palmolive held its Annual Meeting of Stockholders where several key decisions were made. The election of ten directors was confirmed, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for 2025. A non-binding advisory vote on executive compensation was approved, while stockholder proposals for an independent Board Chairman and revisiting plastic packaging policies were not approved.

The most recent analyst rating on (CL) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.